Real Estate Investment Trusts - what can anyone on here post about this?
What are REITs you ask?
REIT stands for Real Estate Investment Trust. Basically a REIT is a company that owns Real Estate in various sectors like shopping malls, apartments, retirement homes, hospitals…etc. A REIT is traded publicly on various stock markets and has many benefits like a volatile price and high dividend. In order for a company to claim REIT status it must pay 90% of its profits to its investors which is basically why they pay such high dividends.
From what I have heard REITs can be a great way to invest in RE without having to deal with tenants on any of that jive, with the benefits of investing in RE.
Well that is basically what a REIT is in a nutshell.
I hope that helps.